Property (Digital Assets etc) Bill [Lords]

Chris Vince Excerpts
Sarah Sackman Portrait The Minister of State, Ministry of Justice (Sarah Sackman)
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I beg to move, That the Bill be now read a Second time.

The Property (Digital Assets etc) Bill is a pivotal step in the evolution of our legal system—one that ensures that the law remains relevant and pre-eminent in the digital age. As we set out in our plan for change, this Government are fully committed to providing investors and businesses with stability and certainty. This Bill will help to provide that certainty for people and businesses who own and transact with digital assets. This will help drive economic growth by encouraging innovation, attracting investment and reinforcing the UK’s position as a global hub for digital finances and technology.

Chris Vince Portrait Chris Vince (Harlow) (Lab/Co-op)
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Does the Minister agree with me that although the Bill is small, it is very much mighty? It is important that we get the Bill on the statute book because we want this country to be ahead of the game on these issues.

Sarah Sackman Portrait Sarah Sackman
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My hon. Friend is right. We want the UK to remain the pre-eminent jurisdiction of choice for legal services, as it currently is. This evolution of our law will enable it to remain a global hub for digital finance and tech. Overall it is a Bill that reflects our legal heritage, embraces technological innovation and prepares our nation for the future.

To appreciate the significance of the Bill, we must begin with the foundations of property law in England and Wales. For centuries, our legal system has categorised personal property as two distinct types: first, things in possession—tangible items that can be physically held or possessed, such as a book, jewellery or gold; and secondly, things in action—intangible rights that can only be claimed or enforced through legal action, such as debts, shares or contractual rights. These categories have served us well for hundreds of years, providing clarity in ownership and facilitating commerce. They have helped to create legal certainty in matters ranging from succession and insolvency to trust structures and collateral arrangements.

The digital revolution introduced a new class of assets—digital assets—that do not fit neatly into either of the traditional categories. As things stand, we look to 19th-century case law, which sets out that a thing can only be property if it fits into the two traditional categories of things in action and things in possession. The unique characteristics of digital assets, like crypto tokens, challenge the boundaries of these legal categories.

Unlike physical objects, digital assets cannot be held in one’s hand. Unlike debts or contractual rights, digital assets have an independent existence in the world that is not dependent on their recognition by a legal system. Yet certain digital assets possess the characteristics that the common law recognises as making them suitable to attract property rights. For example, certain digital assets, like crypto tokens, are rivalrous, meaning their use by one person prevents simultaneous use by others. By contrast to crypto tokens, some digital things, like Word documents, are not rivalrous and so are not recognised by the common law as being capable of attracting property rights. For example, if I were to send you, Madam Deputy Speaker, a Word document, I retain a copy, but if I transfer a crypto token, I no longer possess it. This is due to the underlying blockchain technology that ensures immutability, scarcity and non-duplicability—features that make certain digital assets capable of attracting personal property rights even if they are not a thing in possession or a thing in action.

Recent case law has begun to recognise that certain digital assets can attract personal property rights. However, these decisions have not come forward in precedent-setting courts, and thus the legal landscape remains uncertain. This ambiguity risks stifling innovation, as innovators are unsure what protections they have or whether they will be able to monetise their creation. It also puts off investors from investing in crypto tokens in favour of more traditional and predictable forms of investment. If we do not act, we risk our global competitors getting ahead and putting in place the kind of certainty in their own legal systems that will divert investment away from this country.

Recognising the urgency of this issue, in 2020, under the previous Government, the Ministry of Justice commissioned the Law Commission to review the legal framework surrounding crypto tokens and other digital assets. The commission’s 2023 report was unequivocal: certain digital assets should be recognised as capable of attracting property rights, and legislation was needed to reflect this. The Government have responded decisively. The Property (Digital Assets etc) Bill is the result—a concise yet powerful piece of legislation that affirms our commitment to legal clarity, economic growth and technological leadership.

The Bill contains a single operative clause. It recognises that a thing, including a thing that is digital or electronic, is not prevented from attracting personal property rights merely because it is not a thing in possession nor a thing in action. The Bill allows the courts to develop a further category of personal property through our common law.

Importantly, the Bill does not attempt to define which digital assets may qualify, nor does it prescribe the legal consequences of falling within this category. These matters are rightly left to the common law, which, with its flexibility and nuance, is best suited to assess each asset on its characteristics. This is in accordance with long-established common-law tests for property. This approach reflects the strength of our tradition. It capitalises on the adaptability and flexibility of the common law by empowering the courts to apply established legal tests to emerging technologies. This ensures that our legal system remains responsive, relevant and resilient.

We stand today at the intersection of law and innovation, where centuries of legal tradition meet the boundless potential of the digital age. The Bill is not just legal reform: it is an important step for our law and for the global digital economy, because digital assets are here to stay. From crypto tokens to voluntary carbon credits, these assets are reshaping how we transact, invest and interact—and yet, until now, our private law has struggled to keep pace. This Bill changes that.

First and foremost, the Bill provides legal certainty. It confirms that certain digital assets can be recognised as personal property. This is a fundamental shift. It means that individuals and businesses can now rely on clear legal rights and protections when dealing with things such as crypto tokens. That is because certain digital assets can now attract the same legal protection as other forms of property, which means that owners of things such as crypto tokens can enforce their rights if the asset is stolen. Whether it is theft, insolvency or inheritance, the law will now stand ready to protect those property rights.

By clarifying the legal status of digital assets, the Bill reduces ambiguity and streamlines litigation. That is because the courts will no longer have to spend time debating whether further categories exist or trying to force digital assets into the traditional categories. That clarity will save time, reduce costs and ensure fairer outcomes for all parties involved.

As I have said, the Bill also supports our ambition to be a centre of innovation and growth. It encourages fintech start-ups, scale-ups and global enterprises to choose English and Welsh or Northern Irish law for their transactions, knowing that these legal systems are equipped to handle the complexities of digital assets. The Bill thus unlocks practical economic benefits. It assists in allowing digital assets to be included in estates for inheritance and claimed by creditors in insolvency. These capabilities will fuel innovation, support new financial products and drive economic growth.

Crucially, the Bill does not attempt rigidly to define every type of digital asset. Instead, as I have said, it allows the common law to evolve, giving our courts the flexibility to adapt to technologies that have not yet even been imagined. That is one of the hallmarks of a progressive, forward-thinking legal system such as ours.

This Bill attracted significant cross-party support in the other place. For example, it was described by Lord Holmes as

“a short Bill, but one with significant impact for the UK, and indeed beyond our shores”.—[Official Report, House of Lords, 8 May 2025; Vol. 845, c. 1695.]

It was also described as a Bill that

“sends a signal to all those involved in digital assets”

that

“London and the United Kingdom is an excellent place”—[Official Report, House of Lords, 8 May 2025; Vol. 1696, c. 845.]

to do business.

In the same vein, Lord Sandhurst noted that the Bill was “small but perfectly formed” and that it will

“make an important contribution to the development of the law...and assist judges and litigants in ensuring that necessary protection is given to activities and things in the digital sphere...which might otherwise fail to be protected”.—[Official Report, House of Lords, 8 May 2025; Vol. 845, c. 1696.]

Those are not just words of praise: they are affirmations of the Bill’s importance, clarity and potential to shape the global legal and economic landscape. One noble Lord remarked on Third Reading that “the world is watching”, and rightly so.

We have a proud tradition of legal excellence and a thriving fintech ecosystem. With trillions of pounds in global economic activity expected to be transacted via digital assets by the end of the decade, we must ensure that our legal infrastructure is not only fit for purpose, but fit for the future. This Bill is a critical step in realising that potential.

Of course, the Bill underwent much scrutiny in the House of Lords, and two amendments were made to it. The first extended the territorial scope of the Bill to include Northern Ireland. We are glad that our laws can be aligned in this area and that the benefits of this Bill will be felt more widely. The second amendment was to the Bill’s long title. That was to ensure consistency between the title and the Bill’s operative clause. I am certain that we now have the best possible version of this Bill before us.

The Property (Digital Assets etc) Bill is a testament to the strength and adaptability of our legal tradition. It reflects our commitment to innovation, our respect for the rule of law and our ambition to lead on the global stage. It was described in the Lords as

“future facing, future-proofing, growth enabling ground-breaking and good for innovation, investment, citizen, consumer and the country”.—[Official Report, House of Lords, 30 April 2025; Vol. 845, c. 1297.]

I could not agree more. It is a Bill for the future—a future in which digital assets play a central role in our economy, our society and our lives. By passing this Bill, we are not only clarifying the law, but shaping that future. Let us seize this opportunity and send a clear message to the world that we are ready, willing and able to lead in the digital age.

Trial by Jury: Proposed Restrictions

Chris Vince Excerpts
Wednesday 9th July 2025

(3 weeks, 3 days ago)

Commons Chamber
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Sarah Sackman Portrait Sarah Sackman
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The right hon. Lady has described how important the role of the magistrates courts will be and the importance of whole-system reform. The Government are not looking to tweak one aspect—to tweak what goes on in the magistrates court or the Crown court. One of the geniuses of the magistrates court is the local link and the fact that it delivers local justice, so we will look at that carefully, but there is no getting away from it: the scale of the problem, and what Sir Brian’s report tells us, means that we need whole-system reform of the criminal justice system, from beginning to end.

Chris Vince Portrait Chris Vince (Harlow) (Lab/Co-op)
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I thank the Minister for her statement and for the recognition of the importance of magistrates courts. Sadly, Harlow magistrates court was closed by the previous Government—as was Chorley magistrates court, of course. I recently spoke to a police officer in my constituency who has been a police officer for three years. He is being asked to gather evidence to go to court for crimes committed before he was even a police officer. Is it any wonder that victims have lost confidence in the system? This Government need to ensure that we have fundamental reforms to this process to ensure that people in my constituency get the justice they deserve.

Lindsay Hoyle Portrait Mr Speaker
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And we can reopen the courts in Chorley—they are available.

Oral Answers to Questions

Chris Vince Excerpts
Tuesday 8th July 2025

(3 weeks, 4 days ago)

Commons Chamber
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The Secretary of State was asked—
Chris Vince Portrait Chris Vince (Harlow) (Lab/Co-op)
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1. What steps her Department is taking to reduce the Crown court backlog.

Jim Dickson Portrait Jim Dickson (Dartford) (Lab)
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2. What steps her Department is taking to reduce the Crown court backlog.

Shabana Mahmood Portrait The Lord Chancellor and Secretary of State for Justice (Shabana Mahmood)
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The Government inherited a record and rising courts backlog. We are investing more than the Conservatives ever did, and funding a record allocation of Crown court sitting days—110,000 days this year, which is 4,000 more than during the last Government—but we must reform, too. Sir Brian Leveson will soon present his recommendations for delivering once-in-a-generation reform and swifter justice for victims.

Chris Vince Portrait Chris Vince
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In Essex, 20% of cases are stopped after a defendant has been charged because victims are dropping out and withdrawing their support. With some waiting years for their case to get through the courts, is it any wonder that they give up on justice? Does the Secretary of State agree that we need radical action now to stop the backlog from getting any bigger in places like my constituency of Harlow?

Secure 16 to 19 Academies Bill

Chris Vince Excerpts
Committee stage
Wednesday 2nd July 2025

(1 month ago)

Public Bill Committees
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Emma Foody Portrait Emma Foody (Cramlington and Killingworth) (Lab/Co-op)
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It is a pleasure to serve under your chairmanship, Mr Mundell. Secure schools are a new form of custody for children and young people. Secure 16 to 19 academies have already been established in legislation, with the first ever secure school, Oasis Restore, opening in Kent last year. The Bill will make further amendments to the Academies Act 2010 for the purpose of providing different requirements for securing 16 to 19 academies.

In 2016, Charlie Taylor published his review of the youth justice system. The report made a number of important recommendations, including the need to reimagine how we care for children who commit offences serious enough to warrant detaining them in custody. His proposal was to create a new type of custodial environment focused on the delivery of education and offering children the opportunity to gain the skills and qualifications necessary to prepare them for their eventual release into the community. The Taylor review made a compelling case for change. The need to transform the environment in which we detain and provide care for those children is as necessary now as it was then.

The Police, Crime, Sentencing and Courts Act 2022 established secure schools in legislation as secure 16 to 19 academies under the Academies Act 2010, and secure children’s homes under the Children’s Homes (England) Regulations 2015. As work has continued, and the first secure school, Oasis Restore, is now open, the Bill is needed to make further amendments to the 2010 Act in relation to secure 16 to 19 academies. The proposed changes cover the termination period in which the Government continue to fund the secure school, should there be a need to end a funding agreement for a secure school into which they have entered. The Bill will also amend the duties placed on providers that enter into funding agreements with the Government prior to opening a secure school. The changes will provide far better and more integrated services. With that background in mind, I turn to the clauses.

Clause 1 contains three main measures. First, the Bill will amend section 2 of the Academies Act 2010 to reduce the minimum notice period of funding under a funding agreement from seven to two years for secure 16 to 19 academies. A two-year termination period will enable Government to prioritise value for money for the taxpayer and have more flexibility, should there be any need to terminate a funding agreement with a secure school provider. Reducing it to two years strikes a balance between avoiding a lengthy exit period in which Government would be committed to continue funding the secure school longer than necessary, while ensuring that secure school providers have the certainty of funding to avoid issues with recruiting and retaining the specialist staff required to work in this environment.

Secondly, the Bill will disapply section 9 of the 2010 Act for secure 16 to 19 academies. That will remove the requirement that the Secretary of State considers the impact of entering into a new academy funding agreement on other educational establishments in the area for secure 16 to 19 academies. Although it is important that secure schools are established as academies, in order to ensure they mirror best practice in the community, they are fundamentally different, as secure schools do not compete with other schools. As such, we do not expect them to have an impact on the viability of other local mainstream schools. The Bill would therefore disapply that duty for this particular type of school, to help any future secure schools open with minimal delay.

Thirdly, the Bill will amend section 10 of the 2010 Act, which currently requires that an academy provider consult appropriate persons on whether a funding agreement should be entered into. I recognise the importance of considering the impact on local communities when opening any new school. Clause 1 will amend section 10 to require that the provider consults appropriate persons on how the secure school should work with local partners, such as elected representatives or health and education services.

Chris Vince Portrait Chris Vince (Harlow) (Lab/Co-op)
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I welcome the opportunity to serve under your chairmanship, Mr Mundell. Does my hon. Friend agree that this part of the Bill will help to ensure that these institutions are better integrated with local services? I am thinking particularly about my hon. Friend’s opening remarks about the importance of ensuring that the young people who go to these institutions are better integrated into the community once they leave.

Emma Foody Portrait Emma Foody
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I thank my hon. Friend for that intervention. I think that the success of these schools is absolutely dependent on them being properly integrated with local services, as he rightly says.

Clause 2 establishes that the Bill will extend to England and Wales, but it will apply only to England, given that the academy system has not been adopted in Wales. Clause 2 also establishes that the Bill’s provisions will come into force two months after the day on which it receives Royal Assent and is passed. Finally, clause 2 establishes that, once in force, the Bill may be referenced as the “Secure 16 to 19 Academies Act 2025”. I commend clauses 1 and 2 to the Committee.

Legal Aid Agency: Cyber-security Incident

Chris Vince Excerpts
Monday 19th May 2025

(2 months, 2 weeks ago)

Commons Chamber
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Sarah Sackman Portrait Sarah Sackman
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The hon. Gentleman will know that the cyber-security and resilience Bill will be introduced in this Session. The focus of that Bill is to improve the cyber-defences of this country by bolstering regulator support and the regulatory framework and setting out how our national security agencies can provide a strengthened and emboldened response to just such attacks. It seems to me that that Bill is the appropriate legislative vehicle for delivering what I think we all wish to see, which is a more robust defence of our cyber-systems.

Chris Vince Portrait Chris Vince (Harlow) (Lab/Co-op)
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I thank the Minister for her statement. What shocks me most about this attack is that it is an attack on some of the most vulnerable people in our society. What can be done by residents in Harlow who are concerned that their data has been taken by these criminals, and how can they get legal aid if they need it?

Sarah Sackman Portrait Sarah Sackman
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I thank my hon. Friend for that very important question. People can do two things: first, be in touch with their legal aid provider, because that will be the source of the data sharing and would have been the source of the application for legal aid. Secondly, if they are concerned that their data may have been affected, they can get in touch directly with the Legal Aid Agency. Legal aid providers have been informed of how those who need to apply for legal aid can continue to do so, because it is vital that we do not allow the justice system to grind to a halt and that those who need emergency legal aid can continue to access it. We have put in place business contingency plans to ensure that no one in this country, whether in Harlow or anywhere else, will be prevented from—or delayed in—accessing legal aid while we work to resolve this issue.

Protection of Prison Staff

Chris Vince Excerpts
Monday 12th May 2025

(2 months, 3 weeks ago)

Commons Chamber
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Nicholas Dakin Portrait Sir Nicholas Dakin
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What I do agree with is that punishment and public protection are two very important reasons why people go to prison. As I said to the hon. Member for Strangford (Jim Shannon), I cannot comment on a live police investigation, and my hon. Friend will understand the reasons why.

Chris Vince Portrait Chris Vince (Harlow) (Lab/Co-op)
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I thank the Minister for his response to the urgent question and, like everybody in this House, my thoughts are with the officer who was attacked. From speaking to friends of mine who have worked in the Prison Service over the last couple of years, it is clear that this is not a new problem, and it is vital that we tackle it. Will the Minister echo his commitment to ensure that everyone, whether they are a retail worker in Harlow or a prison officer in Belmarsh, is safe at work?

Nicholas Dakin Portrait Sir Nicholas Dakin
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I absolutely give that commitment: this Government will do all we can to make sure that people are as safe as possible when they go to work. Nobody should suffer what happened to these very brave, wonderful prison officers doing their duty; that should not happen to anybody when they go to work.

Oral Answers to Questions

Chris Vince Excerpts
Tuesday 22nd April 2025

(3 months, 1 week ago)

Commons Chamber
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Alex Davies-Jones Portrait Alex Davies-Jones
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I thank the hon. Member for raising this important issue from her constituency. We know that more needs to be done in this area, and that is why this Government have started to roll out our domestic abuse protection orders to help victims of domestic abuse in selected areas. We are seeing how that goes. We are developing policy in this area to protect victims, and women and girls in particular. I would be more than happy to meet her to discuss what more we can do.

Chris Vince Portrait Chris Vince (Harlow) (Lab/Co-op)
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Having spoken to Essex police and other professionals, and having worked for a homeless charity myself, I know that often the hardest part for victims of domestic violence is making the decision to leave what is sometimes the family home. What work has the Minister done with the Ministry of Housing, Communities and Local Government to address this issue?

Alex Davies-Jones Portrait Alex Davies-Jones
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I thank my hon. Friend for raising this important issue. Tackling violence against women and girls is not just a Ministry of Justice problem to fix, but a problem for every Government Department to fix. That is why I have met with my counterparts across the Departments, including in MHCLG, to discuss housing needs. We will be publishing our violence against women and girls strategy later this year, and I look forward to discussing it with him in due course.

Sentencing Council Guidelines

Chris Vince Excerpts
Tuesday 1st April 2025

(4 months ago)

Commons Chamber
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Shabana Mahmood Portrait Shabana Mahmood
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The hon. and learned Gentleman is absolutely right. It is for Parliament to set the overall sentencing framework, but every single judge has to see the case in front of them and make their own decisions. As I made very clear in my statement, I will always defend the independence of our judiciary; they do vital work and are a crucial part of the separation of powers. Everything that I have sought to do, given this recent episode, has been to respect that separation of powers and assert what we properly consider to be the realm of policy, politicians and Parliament, and what is the realm of the judges.

Chris Vince Portrait Chris Vince (Harlow) (Lab/Co-op)
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I thank the Lord Chancellor for her statement. Does she agree that we should all hold closely the ideal of equality before the law, and that the biggest cause of two-tier justice was the mess that the Conservative party made of our Probation Service?

Shabana Mahmood Portrait Shabana Mahmood
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I am grateful to my hon. Friend, because he gives me an opportunity at the conclusion of my statement to support the Probation Service. In all of the Tory party’s terrible legacy in the criminal justice system, including prisons on the point of collapse, what it did to the Probation Service was unconscionable. This Government are putting things right. I have already made changes to the Probation Service, and I will ensure that it is on the strongest possible footing going into the future.

Sentencing Council Guidelines

Chris Vince Excerpts
Monday 17th March 2025

(4 months, 2 weeks ago)

Commons Chamber
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.

Each Urgent Question requires a Government Minister to give a response on the debate topic.

This information is provided by Parallel Parliament and does not comprise part of the offical record

Nicholas Dakin Portrait Sir Nicholas Dakin
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This is the third consecutive week in which we have discussed this in the House. We discussed it in the Lord Chancellor’s statement, we discussed it at Justice questions last week, and we are discussing it again today.

Chris Vince Portrait Chris Vince (Harlow) (Lab/Co-op)
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I thank the Minister for his response. It has already been mentioned that pre-sentencing reports are important for judges. However, does he agree that pre-sentencing reports should be available for all offenders, and that their availability should not be determined by an offender’s ethnicity, culture or faith? Further to what the hon. Member for Eastbourne (Josh Babarinde) said, we also had a two-tier probation system under the last Government.

Nicholas Dakin Portrait Sir Nicholas Dakin
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I absolutely agree with my hon. Friend’s point.

Courts and Tribunals: Sitting Days

Chris Vince Excerpts
Wednesday 5th March 2025

(4 months, 4 weeks ago)

Commons Chamber
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Shabana Mahmood Portrait Shabana Mahmood
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The right hon. Member will know that it would be inappropriate for the Lord Chancellor to comment on individual judgments. On some of the decisions in the immigration chamber, which have been the subject of some public discussion, he will know that the Prime Minister has been very clear that where a policy or a legal change is required, it is for the Government to bring forward those changes and ultimately for the House to vote on them. In that respect, the Home Secretary is considering further changes to the law. The right hon. Gentleman mentioned deportations, and let me remind him that, under this Government, deportations of foreign national offenders from our prisons are up by 23%.

Chris Vince Portrait Chris Vince (Harlow) (Lab/Co-op)
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Mr Speaker, like Chorley’s magistrates court, Harlow’s sadly closed in 2019. I thank the Lord Chancellor for her statement, but does she agree that we need radical reforms to start driving down the Crown court backlog, including the use of magistrates courts—as I say, sadly, we cannot use Harlow’s at the moment—so that we can get through cases more quickly and give victims the justice they require?